Failing Health Care Co-ops Will Cost Taxpayers

Consumer Operated and Oriented Plan Programs (COOPs) were really a political compromise between Members of Congress who wanted a public plan option and those who didn’t. Once the Affordable Care Act passed, COOPs had outlived their usefulness. However, they are now failing and will cost taxpayers plenty. Senior Fellow Devon Herrick testified before a congressional committee.

Inefficiency in the U.S. Health Care System:

We do not always spend health care dollars in the most productive way. The way we pay for health care encourages both patients and physicians to overuse resources. On the average, every time a patient spends a dollar on health care, 79 cents of it is paid by employers, insurance companies, government and charitable giving. That encourages patients to purchase services that they would not purchase if they paid the full bill.